Answer for Oral Question PL249

QUESTION

Yang Berhormat Awang Haji Mohamad Danial @ Tekpin bin Ya'akub

YANG BERHORMAT AWANG HAJI MOHAMAD DANIAL @ TEKPIN BIN YA'AKUB asked the MENTERI EKONOMI, PERDAGANGAN DAN INDUSTRI to state the Government's strategies for attracting foreign direct investment (FDI) capable of generating high-value employment, technology transfer and the development of local human capital. Are FDI incentives linked to the number of jobs created for local citizens?

ANSWER

Yang Berhormat Menteri Ekonomi, Perdagangan dan Industri

The Government continues to focus on attracting high-value and high-impact foreign direct investment (FDI) in line with efforts to diversify the national economy and create higher-quality employment opportunities for local citizens.

In principle, high-value employment is generated by high-value FDI projects. Therefore, the Government prioritises investments that bring economic activities with high added value, utilise modern technology, and require a highly skilled and knowledgeable workforce.

In addition, the Government encourages FDI that can contribute to:

• The transfer of technology, knowledge and industry best practices;
• The development of local human capital through training and upskilling;
• Research, innovation and the adoption of new technologies; and
• The development of value chains and business opportunities for local companies.

With regard to FDI incentives, the creation of employment for local citizens is one of the important factors taken into consideration. However, the assessment of a project is not focused solely on the number of jobs created, but also on the quality of those jobs, the level of skills developed, the technology transferred, as well as the long-term economic impact on Negara Brunei Darussalam.

The Brunei Economic Development Board (BEDB) will continue to serve as a reference centre, while coordinating and facilitating the progress of FDI projects, from the commercial exploration and planning phases through to the construction, operation and business expansion phases.

At present, BEDB will continue to promote NBD as an attractive and competitive investment destination, particularly in the five identified key sectors with potential, including:

• Downstream Oil and Gas Industries;
• The Food Sector, including food processing, aquaculture and livestock farming;
• The Services Sector;
• The Info-Communications and Technology Sector; and
• The Tourism Sector.

BEDB has identified areas (subsectors) with potential for development through FDI projects, particularly:

• High-Value and skilled employment, including positions in plant operations, operations and maintenance engineering, instrumentation and control systems, industrial automation, occupational safety and health, quality control, research and development, food processing technology, aquaculture, as well as energy transition and hydrogen technologies.

• Technology and knowledge transfer, particularly through the use of industrial automation such as Programmable Logic Controllers and Supervisory Control and Data Acquisition, instrumentation and control systems, plant operation and maintenance technologies, food processing technology, aquaculture, laboratory research, quality assurance, as well as technologies related to the energy transition.

• Human Capital Development through technical training, skills upgrading and specialisation, as well as exposure to actual industrial operations. The identified training areas include processing plant operations, mechanical and electrical maintenance, instrumentation and control, industrial automation, process safety, inspection and quality control, industrial logistics, aquaculture, farm management, food processing technology, food safety, laboratory training, as well as technical skills such as welding, fabrication and the operation of heavy equipment.